Valuing "True Value" In Post-Acquisition Disputes

In post-acquisition disputes involving allegations of misleading or deceptive conduct, the concept of "true value" often plays a central role in the quantification of loss. Unlike standard valuation methodologies grounded in valuation principles, true value is a legal construct - defined and applied by courts for the purpose of assessing damages. Understanding the concept of true value is especially important for lawyers as they work with expert witnesses on damages matters relating to misleading or deceptive conduct.

This article outlines the meaning of true value in the Australian legal context based on our experience, how it differs from market value, the accepted role of hindsight, the treatment of supervening events and practical considerations for legal advisors when instructing valuation experts.